Dimensional Fund Advisors

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Template:Short description Script error: No such module "Infobox".Template:Template otherScript error: No such module "Check for conflicting parameters".Script error: No such module "Check for unknown parameters". Dimensional Fund Advisors, L.P. (branded Dimensional abbreviated DFA[1]) is a privately-owned investment firm headquartered in Austin, Texas. Dimensional was founded in Brooklyn[2] in 1981 by David Booth, Rex Sinquefield and Larry Klotz. The company has 15 international offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore, and Japan.[3] Dimensional maintains additional U.S. offices in Charlotte, North Carolina and Santa Monica, California.

The company's founders studied at the University of Chicago under Eugene Fama. Kenneth French is co-chair of the firm's investment research committee.[4] DFA's investment strategy is based on application of the efficient market hypothesis.[5] Dimensional was one of the earliest firms to offer passive investing and "runs the oldest small-cap index fund" in the United States.[6] However, the firm's versions of index funds have the flexibility to trade daily[7] and skew towards smaller company stocks and value stocks; They operate differently from most index funds which rebalance on specific dates and are weighted by market capitalization.[8] This strategy results in regulators, such as the SEC,[9] and some analysts[10][11][12] describing the funds as actively managed. The company offers equity and fixed income mutual funds, Exchange-traded funds, separately managed accounts, and model portfolios.

In 2009, Dimensional acquired SmartNest, a retirement planning computer software company.[13] Researcher Robert C. Merton left SmartNest's board after the purchase and became a Resident Scientist at Dimensional.[14][15][16]

In November 2020, the firm announced it was augmenting its strictly advisor-access[17] and institutional[18] only mutual fund business model by offering openly-accessed exchange-traded funds.[19][20][21][22]

Board of Directors

Board of Directors of the general partner of Dimensional Fund Advisors LP:[23]

  • David Booth
  • Eugene Fama
  • Kenneth French
  • John "Mac" McQuown
  • Gerard K. O'Reilly
  • Dave Butler

Board of Directors, Dimensional Mutual Funds and ETFs, US:[24]

References

<templatestyles src="Reflist/styles.css" />

  1. Script error: No such module "citation/CS1".
  2. Script error: No such module "citation/CS1".
  3. Script error: No such module "citation/CS1".
  4. Script error: No such module "citation/CS1".
  5. Script error: No such module "citation/CS1".
  6. William J. Bernstein (2002). The Four Pillars of Investing: Lessons for Building a Winning Portfolio. McGraw-Hill, Template:ISBN, p. 103
  7. Script error: No such module "citation/CS1".
  8. John Rekenthaler (Nov 25, 2020) DFA Is Paying the Price for Its Conviction. Morningstar.com, accessed 19 March 2021
  9. Script error: No such module "citation/CS1".
  10. Script error: No such module "citation/CS1".
  11. Script error: No such module "citation/CS1".
  12. Script error: No such module "citation/CS1".
  13. Script error: No such module "citation/CS1".
  14. Script error: No such module "citation/CS1".
  15. Script error: No such module "citation/CS1".
  16. Script error: No such module "citation/CS1".
  17. Script error: No such module "citation/CS1".
  18. Script error: No such module "citation/CS1".
  19. Script error: No such module "citation/CS1".
  20. Script error: No such module "citation/CS1".
  21. Script error: No such module "citation/CS1".
  22. Script error: No such module "citation/CS1".
  23. Script error: No such module "citation/CS1".
  24. Script error: No such module "citation/CS1".

Script error: No such module "Check for unknown parameters".

External links

Template:Major asset management companies